EWC stuck within tight trading range
iShares MSCI Canada ETF (EWC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EWC ended the week 1.59% higher at 30.61 after gaining $0.11 (0.36%) today on low volume ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.04 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 30.60, the market confirmed its breakout through the previous session high after trading up to $0.01 above it intraday.
Daily Candlestick Chart (EWC as at Feb 14, 2020):
Friday's trading range has been $0.08 (0.26%), that's far below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EWC. Prices continued to consolidate within a tight trading range between 30.46 and 30.66 where it has been caught now for the last three trading days.
After trading down to 30.53 earlier during the day, EWC bounced off the key technical support level at 30.56 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 30.60 in the prior session, the ETF ran into sellers again around the same price level today, failing to move higher than 30.61. The last time this happened on Monday, EWC actually gained 0.66% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 30.66 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 30.46 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for EWC. Out of 419 times, EWC closed higher 60.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.56% with an average market move of 0.26%.